Weekly Featured Company: Zenefits

Founded Headquarters Sector Employees Revenue Total Investment Recent Investment
2013 San Francisco Software & Services 1,000 $120M $583.6M $500M

Disrupting HR

Most small companies do away with HR departments. After all, money is tight and the managers themselves are expected to do the hiring and firing, while the accountant takes care of the payroll and benefits. While this process may work for some businesses, the truth is, managing human resources is one of the more tedious aspects of running a small business and the work itself can be frustrating to non-HR managers.

Zenefits, a San Franciso-based SaaS startup, is making the entire HR process a whole lot easier and cheaper, too. Dubbed by Forbes the hottest startup of 2014, Zenefits offers free, cloud-based HR software to small businesses. So how did Zenefits beat the likes of Uber and Airbnb to become Forbes’ 2014 hottest startup? What makes Zenefits stand out is its awesome business model. By giving away a free HR cloud software to companies and then contracting to become the insurance broker of record for these companies, Zenefits earns hefty commissions from their partner insurance firms. This business model has been so effective that Zenefits has amassed more that 10,000 companies and announced a projected annually recurring revenue of $100 million over the next year. The company also recently raised $500 million at a $4.5 billion valuation.

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